Step up announced increasing average farmgate milk price to $5.10 per kilogram of milk solids (kgMS) for 2016/17 season.

Fonterra Australia has today advised suppliers that it has increased its average farmgate milk price to $5.10 per kilogram of milk solids, and increased its forecast closing price for the season to $5.20 per kilogram of milk solids.

“Although the global market remains volatile, since the beginning of the season, global milk supply has continued to decline significantly while demand has remained relatively stable.

“We have seen positive movement in GlobalDairyTrade auction prices through August and September, with a 26 percent increase in the GDT price index since July, although the strong Australian dollar has offset some of the commodity market gains.”

Fonterra has made strong progress on the turnaround of its Australian business, achieving a number of key milestones:

The outer shell of the new cheese facility at Stanhope has been built, and new equipment is moving in;